6 More Weeks? If Only! It’s that time of year when that pesky rodent comes out of the ground and predicts another month and a half of winter. As if we care about that right now. To many it’s been Groundhog Day every day for nearly a year now and news headlines suggest we’re well away from being out of the woods. TWO MASKS?! But much like Punxsutawney Phil when he sticks his head out, cooler heads are prevailing. Our pharma team assuaged these concerns with data and it seems the Street is feeling similar, the reopening / reflation / rotation trades performing strongly today with 10-year yields resuming their climb higher. Equities are on track for their highest 2-day gain since November and the S&P has its sights set on a new ATH, about 50bps away. In fact, no significant damage was done at the index level and given the spike in the VIX we saw last week, the fact it didn’t result in a bigger drawdown was also encouraging. Earnings have again come in relatively well (UPS +1% giving transports a boost) and crude above $55 for the first time in more than a year. But do note – the makeup of the indices is largely tech and an uptick in oil could lead to inflation potential, hurting the growth prospects of those growth names. Second is the move higher in the USD – it has long been a tailwind for stocks but it has been on an upward trajectory since the beginning of the year. And the market is already VERY short the USD; and we know how that can go. Speaking of…
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